Sigma Lithium (NASDAQ:SGML) Trading Up 5.4% - Still a Buy?

Key Points

• Sigma Lithium's stock price increased by 5.4% to $6.26, despite a significant drop in trading volume, showing market activity upward trend.
• Recent analyst coverage includes a "buy" rating from Bank of America with a price target of $12.00, while Wall Street Zen downgraded the stock to "sell."
• Sigma Lithium reported a loss of $0.17 per share in its latest earnings, significantly below the consensus estimate of a loss of $0.03, highlighting ongoing financial challenges.

Sigma Lithium Corporation (NASDAQ:SGML - Get Free Report) shot up 5.4% during trading on Friday . The company traded as high as $6.50 and last traded at $6.26. 712,795 shares were traded during trading, a decline of 54% from the average session volume of 1,546,206 shares. The stock had previously closed at $5.94.

Analyst Ratings Changes

A number of research firms have commented on SGML. Cormark raised shares of Sigma Lithium to a "moderate buy" rating in a research report on Thursday, August 21st. Wall Street Zen downgraded shares of Sigma Lithium from a "hold" rating to a "sell" rating in a research report on Saturday, August 16th. Finally, Bank of America began coverage on shares of Sigma Lithium in a research report on Tuesday, August 26th. They set a "buy" rating and a $12.00 target price on the stock. One research analyst has rated the stock with a Buy rating, According to data from MarketBeat.com, Sigma Lithium has a consensus rating of "Buy" and an average target price of $12.00.

Sigma Lithium Stock Performance

The company has a market cap of $697.91 million, a PE ratio of -14.25 and a beta of 0.09. The company has a current ratio of 0.60, a quick ratio of 0.39 and a debt-to-equity ratio of 1.26. The firm's 50-day simple moving average is $6.07 and its two-hundred day simple moving average is $6.87.

Sigma Lithium (NASDAQ:SGML - Get Free Report) last released its earnings results on Thursday, August 14th. The company reported ($0.17) earnings per share for the quarter, missing the consensus estimate of ($0.03) by ($0.14). The company had revenue of $16.89 million for the quarter, compared to analysts' expectations of $50.44 million. Sigma Lithium had a negative return on equity of 47.19% and a negative net margin of 35.69%. As a group, research analysts anticipate that Sigma Lithium Corporation will post -0.12 earnings per share for the current fiscal year.

Institutional Trading of Sigma Lithium

Several large investors have recently bought and sold shares of the stock. Norges Bank purchased a new stake in shares of Sigma Lithium in the 2nd quarter valued at $11,250,000. Woodline Partners LP raised its position in Sigma Lithium by 65.6% during the first quarter. Woodline Partners LP now owns 2,678,444 shares of the company's stock worth $27,856,000 after acquiring an additional 1,060,771 shares during the period. CenterBook Partners LP raised its position in Sigma Lithium by 416.8% during the second quarter. CenterBook Partners LP now owns 816,515 shares of the company's stock worth $3,674,000 after acquiring an additional 658,533 shares during the period. Adage Capital Partners GP L.L.C. raised its position in Sigma Lithium by 104.5% during the second quarter. Adage Capital Partners GP L.L.C. now owns 900,000 shares of the company's stock worth $4,050,000 after acquiring an additional 460,000 shares during the period. Finally, Caption Management LLC grew its holdings in shares of Sigma Lithium by 116.0% during the first quarter. Caption Management LLC now owns 58,104 shares of the company's stock worth $604,000 after buying an additional 422,100 shares in the last quarter. Hedge funds and other institutional investors own 64.86% of the company's stock.

About Sigma Lithium

Sigma Lithium Corporation engages in the exploration and development of lithium deposits in Brazil. It holds a 100% interest in the Grota do Cirilo, Genipapo, Santa Clara, and São José properties comprising 29 mineral rights covering an area of approximately 185 square kilometers located in the Araçuaí and Itinga regions of the state of Minas Gerais, Brazil.